Overview

• Starting Sept. 1, Ottawa will lift 25% counter‑tariffs on U.S. imports that meet USMCA rules, mirroring the U.S. carveout.
• Tariffs on U.S. steel, aluminum and automobiles stay in place as Canada targets sector‑specific negotiations.
• The White House called the step "long overdue," and both sides said they would reconvene after this week's phone call.
• The change comes after months of escalations, including a 35% U.S. tariff on non‑USMCA‑covered Canadian goods and three Canadian counter‑tariff rounds.
• Carney said roughly 85% of bilateral trade remains tariff‑free and pegged the average U.S. tariff on Canadian goods at 5.6%, as Ottawa readies consultations for next year's USMCA review.